The Best Strategy for Investors Today
… when the median single-family home price is at 90 ounces or 80 ounces and perhaps even less, a house can be purchased at exceptionally good value … Specifically, gold’s bull market is not yet finished, at least based on the historical experience recorded in this chart. Regardless what happens to the dollar price of houses, their gold price is likely to fall further. In other words, housing prices seem destined to become cheaper, or more to the point, the dollar price of gold looks destined to rise further. In January 1980, when gold reached its peak in that previous bull market, the median single- family home cost 86 ounces. Although I am not aware of the historical record for housing prices during the Great Depression, it is likely that at its depth, the median single-family home probably cost less than 86 ounces, given the severity of that economic downturn and gold’s heightened purchasing power because of the financial crisis back then caused by widespread bank failures. Thus, when the median single-family home price falls to less than 100 ounces from today’s 153 ounces, home prices are starting to become good value. And at some point when the median single-family home price is at 90 ounces or 80 ounces and perhaps even less, a house can be purchased at exceptionally good value. At that moment, it will be a good time to spend some gold now being accumulated – i.e., being saved – to buy a house. This observation leads to a more important conclusion, given that gold is money. Rinat’s coments - You can buy 3-4/2/2 better then new home in Lehigh Acres for ounces of GOLD TODAY!!!
How many Ounces of Gold does it take to buy the Average U.S. House? Average U.S. real estate price divided by gold
You have all seen the Case-Shiller Home Price Index charts as priced in USD. The chart below is the same index, except priced in ounces of gold. This shows that because real estate was in a bubble at about the same time gold was in a bear market, the real estate bubble in gold terms started in 1996 and peaked in The value of the Case-Shiller 10-city index today is 140 oz of gold. Incredibly, the same value as in The ultimate low occurred in 1980 when this same index would have been valued at only 75 oz.